Estimating the effects of Internet exchange points on fixed-broadband speed and latency

The present paper provides estimates of the relationship between the number of Internet exchange points (IXPs) and fixed-broadband speed and latency in 74 countries from 2016 to 2019, using a balanced panel data set developed by the Economist Intelligence Unit for its “Inclusive Internet Index”. While in several studies, a positive role of IXPs on Internet speed and latency is established, a majority of the earlier ones are technical studies examining the traffic routes in specific networks. This paper contributes to this literature by triangulating earlier findings using an econometric model. The recent availability of the panel data set on IXPs, speed and latency by the Economist Intelligence Unit has made this exercise possible. The preliminary findings highlighted a statistically significant and positive relationship between the number of IXPs and fixed-broadband speed. For every 1 per cent increase in the number of IXPs per 10 million inhabitants, the fixed-broadband download speed (Kbps) is expected to increase by approximately 0.8 per cent. Despite the benefits of IXPs, challenges remain in establishing them, and collaboration and trust among several stakeholders (national and international) is required. These challenges pose important policy implications for policymakers in ensuring the sustainability of IXPs.